Home Improvement

Benefits

Application Process

FAQs

Benefits

Leaky roof finally gotten to you? What about putting in a pool? Whatever your home improvement need, JSC Credit Union has the loan for you. Our Home Improvement loans offer competitive rates and terms up to 15 years.

Credit and income are reviewed - can take up to three business days Once Pre-qualified, we will provide you with a Good Faith Estimate that outlines: rate, term, payment and closing costs.

Preapproval:

If you decide to proceed with the loan, you will sign and return the Good Faith Estimate acceptance letter. We then will proceed by ordering the following reports on your behalf: (fees apply)

Property Report

Flood Certification

Is a spouse required to be on the loan?

Texas is a community property state, therefore, a spouse and anyone who is listed on the deed of trust is required to be a joint applicant and must occupy the property.

County Tax Appraisal (no charge)

A Formal Appraisal may also be required when:

When equity is insufficient

At the discretion of the Credit Union

Next, we will send you a second group of disclosures that must be signed and returned. These include:

The FACT Act Notice

The Standard Flood Hazard Determination Form

Truth and Lending Early Disclosure Statement – must be signed by applicant seven business days before closing

Approval:

At this time you will be contacted to set an appointment for closing. The following document must be signed at least 24 hours before closing:

Preliminary Settlement Statement (HUD-1A)

Deposit/Prepaid Acknowledgment

You will also receive a complete loan package for you to review prior to closing.

Loan Closing:

At this point you and your loan officer have scheduled a closing appointment at a JSC Branch and a time convenient for you. For documents needing a Contractor’s signature; the contractor may sign anytime between closing and funding. (The State requires a minimum of 3 days before funding) This is a good time to contact your contractor to make him aware of your closing date.

Documents that will be provided at your closing appointment:

A copy of the Final bid/contract

Note & Truth-in-Lending Disclosure

Texas Mortgage Fraud Notice

Mechanic’s Lien Contract

Affidavit of Debits and Liens

Document Correction Agreement

Loan Agreement Notice

Disclosure regarding review of loan documents

HUD-1 Settlement Statement (Final)

Letter to the Insurance Company

Supplemental Mortgage Insurance Provision

Notice of Right to Cancel Cover Sheet

Notice of (3 day) Right to Cancel -No funds can be disbursed, nor can work begin until 3 days has passed

Draw Request

For an explanation of these documents please refer to the Explanation of Home Equity Closing Documents included with this package.

After Closing:

After your loan closes, you have three business days to cancel your loan application. If after three business days you still wish to continue with the process you will return to the Credit Union the Statement of Non-cancellation (provided at closing) indicating that you do not wish to cancel your loan. Loan proceeds cannot be disbursed nor can work begin prior to the receipt of this notice by the Credit Union and the required three days has elapsed.

Draw Requests:

Draw request are made to loan officer (24hr request is greatly appreciated). Draws are disbursed in the form of a check; the checks will be made payable to member and the Contractor, but will only be given to member.

If you need further assistance, please contact a mortgage specialist at 281-488-7070.

Robin Pavalonis ext. 1143

Stacey Horton ext. 1145

Amber Draper ext. 1439

FAQs

Definition:

A home improvement loan is a type of loan in which the borrower uses the equity in their home as collateral. These loans are useful to finance major expenses such as home repairs, medical bills, debt consolidation, or college education. A home improvement loan creates a lien against the borrower's house.

What is the maximum time that you can finance a Home Improvement loan for?

The maximum term you can finance a Home Improvement loan for is 15 years (first lien) and 10 years for (second lien).

How is the interest rate determined?

The interest rate varies depending upon if the loan will become first or second lien, and how long the term of the loan is for i.e. 5yr, 10yr, and 15 yr. For second lien 5 and ten year term only.

How long does the process take to finalize a Home Improvement loan?

Certain time restrictions are mandated by Texas Law and can not be shortened. The applicant must wait a minimum of 12 calendar days prior to the closing date, then an additional 3 business days must pass before funds can be distributed. Therefore, the minimum closing time of this loan is 17 calendar days. However, the loan could take longer due to reasons outside the norm. (e.g., the timing of receipt of signed documents, legal disposition of the property, unpaid taxes, unreleased lien, timing of formal appraisal or title commitment)

Can a home owner have more than one Home Improvement loan?

Texas Law allows one Home Improvement loan at a time.

Does the property have to be homestead exempt?

Property used to secure a Texas Home Improvement loan must be the borrower's homestead.

What are the closing costs associated with a Home Improvement loan?

The standard cost for closing a Home Improvement loan is $203.00-$217.00. Per State law, all fees associated with this loan cannot exceed 3% of the original principle loan amount.

The break-down of these fees are as follows:

Property report $140.00.

Flood certification $15.00.

Recording fees $48.00 to $62.00.

Appraisal

Most often we use the tax appraisal (no cost). However, if a formal appraisal is required

the cost ranges from $400.00 - $500.00.

Title commitment fees (determined by the title company)

How much can be borrowed for a Home Improvement loan?

The amount borrowed for a Home Improvement loan is 90% of the appraised market value minus any existing liens on the property. For example, on a property with a fair market value of $100,000, the maximum amount of debt against the property permitted by is $90,000. Assuming there is an existing debt of $30,000, the maximum amount of the Home Improvement loan can be is $60,000.

Can an existing appraisal be used to determine property value?

At the discretion of the Credit Union, an existing appraisal may be used, granted it is no older than one year and was prepared for another lender.

Is there a prepayment penalty on a Home Improvement loan?

No. A lender may not charge a penalty to a borrower for paying all or a portion of an home improvement loan early.

Is a spouse required to be on the loan?

Texas is a community property state, therefore, a spouse and anyone who is listed on the deed of trust is required to be a joint applicant and must occupy the property.

Does my contractor have to be licensed for a Home Improvement Loan?

Yes, all improvements must be done by a licensed contractor.

How are draws taken on a Home Improvement Loan?

Once you close on your home improvement loan you can take draws as the work is completed. You will need to contact your loan officer to schedule pick up of the check.

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